Don't miss out on today's Bank Nifty trading opportunities; know the key levels!

5paisa Research Team 19th April 2023 - 11:01 am

Bank Nifty continued its winning streak for the fifth straight day on Tuesday.

Though the index registered gains of 0.01% it formed a bearish candle as the price closed below the opening level. Moreover, the index formed an inside bar as the price traded within the high and low of the prior trading session.

Bank Nifty opened with a positive gap and moved higher on a stable note. But, later in the day, it sharply declined by 350 points in just one hour. Except for this sharp decline, there is not much change in the direction. It may trade in Monday's range for another couple of days.

Bank Nifty is still trading above all short-term averages. The volumes declined on Tuesday. The 14-period daily RSI is still in the strong bullish zone, as it trades above the level of 60. MACD is rising northward which bodes well for the trend. Going forward, the level of 42604 may act as a short-term resistance in the near term. And the level of 41800 is likely to act as a support for now. As long as this zone is protected, apply the neutral strategies.

Strategy for the day

The Bank Nifty extended its winning streak on Tuesday and formed an inside bar as it traded in a tight range and within the range of the prior trading session. It is trading above key moving averages and RSI is still in a strong bullish zone. Going ahead, a move above the level of 42294 is positive for the index, and it can test the level of 42470 on the upside. Maintain a stop loss at the level of 42200 for long positions. Above the level of 42470, continue with a trailing stop loss. But, a move below the level of 42200 is negative, and it can test the level of 41955. Maintain a stop loss at the level of 42290. Below the level of 41955, continue with a trailing stop loss.

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5paisa Research Team

Disclaimer: Investment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equites and Derivatives can be substantial.

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